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ECONOMY

Weingast - Wittman (eds) - Handbook of Political Ecnomy

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376 social choice<br />

and everything in between. However, the model rests on a handful of heroic assumptions<br />

worth repeating. The three basic components, welfare (R), rights (M i ), and the<br />

set of endstates (X), are three clearly defined and separate entities whose interaction<br />

is limited to two aspects. First, the endstate z only depends on the profile of actions<br />

m via the mapping f , namely the game form. Second, the final welfare level only<br />

depends upon the endstate z, and not directly upon the individual actions.<br />

Conspicuously absent from the model are two important elements of the interaction<br />

of rights and welfare. First, the fact that the nature and extent of my rights affect<br />

my welfare: which game I play, and what role I have in it matters to me. Formally the<br />

whole set M i influences R, not just my particular action m i . Second, I bear some<br />

responsibility in shaping my own welfare because I am free to choose my values<br />

and goals.<br />

The former point inspires the literature on freedom of choice, where the central<br />

question is to extend an ordinary welfare relation comparing single outcomes, to<br />

another welfare relation comparing choice sets (subsets of outcomes) (see Bossert,<br />

Pattanaik, and Xu 1994; Dutta and Sen 1996; Laslier et al. 1998; Pattanaik and Xu 1998,<br />

2000a, 2000b; Sugden1998). The latter point explains the paradox of adaptive preferences:<br />

agents who adapt their expectations to their lot enjoy a higher welfare than<br />

those who do not, and this responsibility should be accounted for when we define fair<br />

endstates. One solution is to introduce additional variables in the microeconomic<br />

formulation, so as to differentiate between those characteristics for which an agent<br />

is responsible, and those for which she is not: Roemer and Fleurbaey initiated this<br />

fruitful line of research (Bossert 1995; Fleurbaey1995a, 1995b; Roemer1993, 1996,<br />

2000;Sen1991).<br />

Another simplifying assumption of the general model is the identification of the<br />

game form G with an allocation of rights. Since Gardenfors (1981), this is an approach<br />

endorsed by many authors (e.g. Gaertner, Pattanaik, and Suzumura 1992). The more<br />

traditional approach insists that a right confers on an individual the ability to fix some<br />

features of the final outcome; that the two approaches are not identical is discussed in<br />

particular by Deb, Pattanaik, and Razzolini (1997).<br />

3 Endstate Justice versus<br />

Procedural Justice<br />

.............................................................................<br />

These shortcomings notwithstanding, the logical separation of welfare and rights<br />

has considerable advantages. By separating ends—the distribution of welfare—from<br />

means—the set of actions and the game form G—we can contrast and combine two<br />

familiar one-sided interpretations of justice: on the one hand endstate justice (e.g.<br />

classical utilitarianism), on the other hand procedural justice, rooted in the liberal<br />

tradition.

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